Direct sourcing may not be a good fit for some situations, so it’s important to also have a a solid, well managed preferred vendor program. Why? The two channels complement each other and serve different purposes in the overall sourcing spectrum. Good direct sourcing programs should place similar compliance and rate rules on both sourcing channels, so that both are aligned with the organization’s business strategy, deliver strong procurement value and meet similar risk management imperatives.
Here are 4 considerations for building out a direct sourcing program.
Embrace direct sourcing, but make sure you have the right controls.
Track all direct sourcing activity, and protect the integrity of your rate card.
Don’t focus on direct sourcing alone - it needs to fit your whole program.
Ensure you have a good partner to manage your directly sourced workforce.